Australian Property


Spruikers blow gasket in panic bubble defence

By Leith van Onselen As expected, yesterday’s report by LF Economics, “Parental Guidance Not Recommended”, which argued that today’s first home buyers (FHBs) face far greater obstacles to home ownership than previous generations, received a harsh rebuke from Australia’s property commentators. The Daily Telegraph rubbished the report’s claim that the loans underpinning Australian housing values


Weekly RP Data Australian house price update (the big stall)

By Leith van Onselen In the week ended 26 November 2015, the Core Logic-RP Data 5-city daily dwelling price index, which covers the five major capital city markets, fell by 0.61% – the sixth consecutive weekly fall (see next chart). Values fell across all major markets except Brisbane: So far in November, home values have


Brisbane joins ghost city rush

By Leith van Onselen Earlier this month, The AFR reported that investor demand will soon start to moderate and both rental and capital growth will slow because of concerns over a major oversupply of apartments: …there is some growing concern about the 19,800 apartments either under construction or being marketed within the inner-city precincts of


Make no mistake, housing affordability sucks

By Leith van Onselen Economic consultancy, LF Economics, has produced an interesting new report entitled “Parental Guidance Not Recommended”, which analyses long-term trends in housing and unit prices, interest rates, household incomes and mortgage costs to determine affordability in the Australian residential property market, via the LF Economics Affordability Index. The report finds that new


Pain intensifies for Perth’s landlord army

By Leith van Onselen Earlier this year, the Australian Taxation Office (ATO) released its statistics for the 2013 financial year, which revealed that Western Australians are some of the heaviest users of negatively geared property investment (see below charts). Suffice to say, many of these investors must be growing nervous, with the REIWA releasing its


Realty website price war tells you just one thing

From The Australian: REA Group has extended a price freeze across its premium advertising packages for residential properties, heaping further pressure on rival Domain to curb its price increases. The operator of real­, Australia’s No 1 property website, has committed to holding the line on prices until at least May next year at a time


The fuel driving the Syd/Melb housing bubbles

By Leith van Onselen Among all of the factors that drive house price growth, arguably the most important is the flow of housing finance commitments, which has shown an incredibly strong correlation over the past several decades (see next chart). On Friday, the ABS released its State Accounts for the year ended June 2015, which


Sydney the least affordable rental market

By Leith van Onselen Not only is Sydney the least affordable housing market to purchase in, but renting sucks there as well. Despite the billions of taxpayer dollars used to subsidise negatively geared landlords, many working families – those on low to moderate incomes – are experiencing severe housing stress, according to the inaugural Rental Affordability


NSW/VIC housing valuations turn nuclear

By Leith van Onselen Earlier this month, the Australian Bureau of Statistics (ABS) released its 2014-15 Australian System of National Accounts (ASNA) data release, which provided a detailed presentation of annual national accounts data. Locked away on Table 61 was my favourite section of the release: data on aggregate land values at the state and


Pup Clarke to lead realty into ashes

From The Australian: Recently retired Australian ­cricket great Michael Clarke has ­revealed he is considering a future in property development. …Mr Clarke, an ambassador for NSW developer Johnson Property Group, made the comments as he and wife Kylie paid $1.39 million for a luxury home at the $388m masterplanned estate at Lake Macquarie being undertaken


New identity rules closes net on illegal foreign buyers

By Leith van Onselen In September 2014, the Victorian Government amended the Transfer of Land Amendment Act 2014 to require mortgagees/lenders to take positive steps to verify the identity of mortgagors/borrowers and their authority to deal with the land being mortgaged (see here for details). A reader last night informed us that on 30 September,


HIA: End is nigh for dwelling construction boom

By Leith van Onselen The Housing Industry Association (HIA) has today released its Spring 2015 National Outlook, which once again forecasts the peaking of Australia’s dwelling construction boom in 2014-15 before recording a 5.5% decline in dwelling starts this financial year followed by a further decline of 13.4% in 2016/17. From the Media Release: “New


How the housing construction cycle ends

From UBS: Auction clearance rates – while only a sub-set of the broader market – have weakened sharply over recent weeks, adding to prior months corrections lower (Figure 9). The current level of clearance rates has in the past been consistent with ‘flat’ house price growth. Despite this, the level of auctions volumes has strengthened


Sydney auction clearances crashing

Core Logic-RP Data released its auction market report yesterday, which posted a fall in the national clearance rate driven by the ongoing slump in Sydney and a sharp drop in Melbourne’s clearance rate. The preliminary national clearance rate was 60.8%, down from the 63.8% rate recorded last weekend, according to Core Logic-RP Data: Sydney’s preliminary


Kelly O’Liar schooled again on negative gearing

Cross-posted from The Conversation: Negative gearing is a tax break available for people who own at least one other property in addition to their primary place of residence. This tax break applies only if the costs associated with the investment, including interest payments and other expenses, are greater than the rental income. Any loss made


Melbourne the toast of property spruikers everywhere!

From Domainfax today: Listings in Melbourne showed its tenacity by holding similar numbers to the week before, while Sydney’s listings fell. Sydney’s preliminary rate was 59.3 per cent, the third week in a row the city has recorded below 60 per cent and the lowest since February 2013. “The boom has not been as prevalent


Realtors can’t turn a blind eye to foreign buyers

By Leith van Onselen The new enforcement regime governing investment in Australian property by foreign buyers, which comes into effect on 1 December, will for the first time include financial penalties for third parties that knowingly assist foreign buyers to break the rules. And this has created some confusion amongst the real estate community. According


Chinese dump London property

From BS: Chinese investors have walked away from some £2.5 billion ($5.3bn) worth of property deals in London in recent weeks, posing a multi-billion dollar question: are these exceptions, or do they signify an emerging a trend? …One simple explanation for the current hesitation may be that London has simply become “too expensive”, according to


Morrison prepares enormous Boomer bribe

By Leith van Onselen Treasurer Scott Morrison must believe that “ending the age of entitlement” does not extend to older Australians. As reported in The Australian, Morrison has put forward the ingeniously inequitable plan to allow retirees to sell-off their expensive large homes, pocket the money, continue to collect the Aged Pension, and be exempted


Old media doesn’t die it just becomes a realty agent

It’s not easy to keep up! Adelaide Monday, Melbourne Tuesday, mortgages and Gold Coast Wednesday, and today it’s “hot suburbs”, from the AFR: Dr Andrew Wilson, chief economist of Australian Property Monitors, says: “I would say that flattening is the key word. The great Sydney boom has clearly ended. The peak of the cycle for both Sydney and Melbourne was